A yeast-like fusant was successfully formed from protoplasts of Schizosaccharomyces pombe and Lentinula edodes. The new fusant could utilize 28 carbon sources, better than its parent yeast cell. Using glucose for the fusant, ethanol was produced as the major product and arabitol was a byproduct. Using xylose or glucose and xylose (1:5 (w/w)), arabitol and xylitol was produced as the major and minor products, respectively. Using xylan, the biomass increased rapidly to a plateau of 18.20-18.40 gl(-1) at day 10. Xylose, xylitol and arabitol were produced with arabitol being the final and major product. The growth rates of single or co-substrate were in the descending order of glucose (0.28 h(-1)) > xylose-glucose (0.21 h(-1)) > xylose (0.15 h(-1)) > xylan (0.11 h(-1)). Agro-waste materials and arabinose were susceptible to degradation by the fusant. Extracellular xylanase, intracellular xylose reductase, xylitol dehydrogenase and arabitol dehydrogenase were predominant in the culture of the fusant. Overall, it will be preferable to introduce the ethanol or polyol production by the fusant. (C) 2004 Elsevier Inc. All rights reserved.